Why would someone use earned value?

Earned Value Management is…a project management methodology.…It integrates scope, time and cost…to accurately measure current project performance…and realistically predict future performance.…Without Earned Value Management it is…almost impossible to truly understand…the status of a project.…Let's take a typical example.…The blue line represents the budget…for the project based on how much work…should be complete over time.…

We call this our Planned Value.…The green line represents how much we have spent…to date on the project for the work that is complete.…We call this our Actual Cost.…I was consulting for a very successful Silicon Valley firm…when the group's finance manager…presented this slide.…Every person in the room cheered…since the project was running under budget.…I asked, "How are we doing from a work complete standpoint?"…Really I was asking if we were running under budget…because we were managing our money well…or if we were running under budget…because we had less work complete than we should.…

The room went silent.…

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Released

3/18/2014

BAC, CV, ETC, TCPI. Don't let the alphabet of earned value acronyms deter you. Follow along with Aileen Ellis, PMP, PgMP, as she walks you through earned value calculation. Relevant for those considering the PMP exam or interested in better managing your project performance, this course shows you the calculations that make earned value management (EVM) one of the most critical project metrics. Aileen walks through two concrete examples, a construction project and a system upgrade, and shows how earned value metrics can help you calculate current performance and forecast future performance. Since it's not all a numbers game, interpret the results of these calculations and forecasts to make better project decisions.

Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.

Topics include:

What is earned value management?

Who uses EVM?

Determining budget at completion, planned value, and earned value

Calculating schedule and cost variance as well as schedule and cost performance index

Forecasting future costs

Computing TCPI for project success

Exploring limitations of EVM<br><br>

The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.